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Willowbrook
7th December 2013, 20:45
I was living in the UK for a year or so, and unexpectedly had to move to the USA.
I worked as a contractor in the UK and opened my own business accordingly.
During my time in the UK I racked up a rather large debt of corp tax and dividends which I'd overpaid to myself (6 thousands pounds or so) ... I had the intention of paying this off, but alas, as I had to move it became a debt.
I had an umbrella company in the UK looking after me, and they are since trying to contact me to arrange payment via email (I have not replied yet).
I'm now concerned about the legal ramifications of this...
Even though I am living overseas now, am I still liable for this debt? Can they track me down here in the US, or even in my home country (Australia)?
Can I simply state that my business has no income, and thus this debt cannot be paid?
Please help! Any advice would be greatly appreciated!

Kanye
8th December 2013, 07:50
Why would an umbrella company be looking after a LTD company?

You would usually use one or the other.

If you ever plan on coming to the UK again I would get in touch with HMRC and make efforts to either pay or wind down the company as insolvent. You never know if they would nick you at the bored for tax evasion otherwise!

LisaContractorUmbrella
9th December 2013, 08:05
Can you explain a little more about the company that's chasing you for the debt? If you had your own Ltd Co then there should not be an intermediary involved

malvolio
9th December 2013, 09:06
More to the point there are treaties between UK and both USA and Oz so you can't hide and pretend the debt doesn't exist. And sorry but I don't buy the excuse that you had to go quickly so didn't have time to sort out the business. Ever heard of the internet? Or accountants?

Perhaps you should be talking to HMRC and negotiating a clean exit before the writs arrive.

northernladuk
10th December 2013, 00:07
I would forget the 6K issue. Have you seen the penalties for not paying your VAT alone?

HM Revenue & Customs: Penalties for mistakes and delays with your VAT (http://www.hmrc.gov.uk/vat/managing/problems/penalties.htm)

Then there is the penalties on the corp tax and possible taxation on the dividends which were illegal so would expect them to tax you on that yadda yadda...

You can also be held personally liable if they suspect you did this on purpose so blaming the company won't work either. For example, with VAT

DMBM530170 - Debt and return pursuit: VAT: liability for payment: company managing officers (http://www.hmrc.gov.uk/manuals/dmbmanual/dmbm530170.htm)

Ruprect
11th December 2013, 13:56
Arrange for England to win the last 3 tests and we'll see what we can do

kal
11th December 2013, 17:43
Arrange for England to win the last 3 tests and we'll see what we can do

:D

Willowbrook
12th December 2013, 05:00
Can you explain a little more about the company that's chasing you for the debt? If you had your own Ltd Co then there should not be an intermediary involved

Hi LisaContractorUmbrella

Thanks for your reply. They are not chasing me for the debt, rather they have sent me the accounts for the end of the year and are waiting for me to "OK" them to be submitted to the HMRC and Companies House.

The umbrella company acted as the intermediary company whilst i was contracting and had my own ltd company - they managed my books, and submitted everything on my behalf whilst I was there

I'm not sure whether my focus should be communicating with them, or the HMRC, or both?

Willowbrook
12th December 2013, 05:04
Why would an umbrella company be looking after a LTD company?

You would usually use one or the other.

If you ever plan on coming to the UK again I would get in touch with HMRC and make efforts to either pay or wind down the company as insolvent. You never know if they would nick you at the bored for tax evasion otherwise!

Kanye, thanks for your advice. I am planning to send an insolvency letter to the umbrella company (if they are the correct people to receive this??), and then apply to Companies House to have the company struck off

Hopefully this is an OK course of action?

mudskipper
12th December 2013, 06:54
Are you sure it's an umbrella company and not an accountancy company?

LisaContractorUmbrella
12th December 2013, 08:08
Hi LisaContractorUmbrella

Thanks for your reply. They are not chasing me for the debt, rather they have sent me the accounts for the end of the year and are waiting for me to "OK" them to be submitted to the HMRC and Companies House.

The umbrella company acted as the intermediary company whilst i was contracting and had my own ltd company - they managed my books, and submitted everything on my behalf whilst I was there

I'm not sure whether my focus should be communicating with them, or the HMRC, or both?

From what you have said, it sounds as though you were working with a managed service company Managed Service Companies - MSC Legislation, Rules and Guides (http://www.contractoruk.com/managed_service_companies/) - if you were then you are going to be even more unpopular with HMRC. Did you sign a contract with the 'umbrella company'?

Has the company sent you any penalty notices for late filing of the accounts? Have you had anything from HMRC or Companies House?

If you owe money to HMRC then I would be inclined to deal with them direct - they are not good at letting things go - there was a Tax Tribunal case in May 2013 which involved a guy who moved to New Zealand in 2004 - HMRC got their money!